Grade summary

Nippon Paint has made significant progress in the last year, scoring a C- in this year’s ChemScore. The most positive change is due to how scores are calculated in the Lack of Controversies category, which has now stopped counting events older than five years. The company produces two SIN List substances but no persistent chemicals. However, only four per cent of its production is known. A phase-out plan is scheduled to be developed this year, which could increase the scoring of Nippon Paint in future rankings. Some phase-out of certain hazardous chemicals is, however, already taking place. There is room for improvement by implementing strict cut-off criteria for hazardous chemicals in new products.

Nippon Paint offers environmentally friendly products but lacks promotion on third-party platforms such as ChemSec’s Marketplace. The company engages in circular processes, for example paint collection and solvent recovery, but falls short in declaring the absence of hazardous substances. Nippon Paint is yet to show clear commitments to phase out hazardous chemicals and adopt a dedicated circular strategy.

How did we come to this score?

Opportunities for improvement

1. Market safer alternatives
   Nippon Paint does not have any safer alternatives evaluated by independent third parties in its product portfolio. Safer alternatives replace the use of hazardous substances and are crucial in order to put an end to chemical pollution. The company should, therefore, start producing safer alternatives or market existing ones on an independent third-party platform. A good place to advertise is ChemSec’s Marketplace, where buyers and suppliers can find and market safer alternatives.

2. Increase transparency
   Much is still unknown about Nippon Paint’s production of hazardous chemicals. At least when it comes to public information. In order to allow a comprehensive global evaluation, Nippon Paint should disclose the share of revenue and production volume of hazardous chemicals (or products that contain them). This information should cover all operations globally. This is particularly important since only four per cent of the company’s sales are in the EU/US, where some degree of chemical transparency exists.

3. Increase circularity
   The chemical industry finds itself at the beginning of the value chain. Therefore, it has a responsibility to act fast against the ever-growing scarcity of our planet’s resources. But Nippon Paint receives one point for circularity since we were unable to identify any circular products, processes or strategies. Nor did we see a decrease in hazardous waste or increased use of recycled hazard-free feedstock or biobased material. Nippon Paint should start by identifying its current production and use of circular products and processes, and then specify the share of revenue that is derived from such products. The company should also develop and present a circularity strategy, including a commitment to increase the share of revenue derived from circular products.

Category breakdown